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Definition of Common Stock Common stock represents ownership in a company. When you buy common stock, you’re essentially buying a small slice of that business. As a shareholder, you’re entitled to a portion of the company’s profits (usually in the form of dividends if paid), and you have voting rights to help elect the board of directors or vote on major company decisions. Think of common stock as your seat at the table—albeit maybe at the back if you only own a few shares.

What is Preferred Stock? Preferred stock is a type of ownership in a company that has a higher claim on assets and earnings than common stock. That means if the company pays dividends, preferred shareholders get theirs first. If the company goes belly-up (let’s hope not), preferred shareholders also get paid before common stockholders—though still after bondholders.

Definition of Dividend Stock A dividend stock is a share in a company that regularly pays out a portion of its profits to shareholders in the form of dividends—typically on a quarterly basis. These payments are usually made in cash, but can also come as additional shares of stock.

Definition of Value Stock A value stock is a share of a company that appears to be trading for less than its intrinsic value. Think of it as a great company that’s momentarily on the clearance rack. Investors believe the stock is undervalued by the market and has solid fundamentals—like steady earnings, a strong balance sheet, and even dividends—but for whatever reason, Wall Street’s spotlight isn’t on it… yet.

Definition of Growth Stock A growth stock is a publicly traded company that is expected to grow at a rate significantly above the average for the overall market. These are the kinds of companies reinvesting their earnings back into the business instead of paying dividends, with the goal of expanding fast—think rocket fuel, not steady cruise.

Definition of Penny Stock A penny stock is typically a share of a small public company that trades for less than $5 per share. These stocks are often traded over-the-counter (OTC) through platforms like the OTC Bulletin Board or Pink Sheets, rather than on major exchanges like the NYSE or Nasdaq. Penny stocks are known for their low price, low trading volume, and high risk—but also the potential for high reward.

Definition of a Blue Chip Stock A blue chip stock refers to shares of a well-established, financially sound, and nationally recognized company with a history of reliable performance. Think of them as the all-star players in the stock market—companies that are leaders in their industries, pay regular dividends, and have a track record of weathering economic storms.

What is a Conglomerate? A conglomerate is a large corporation made up of several distinct and often unrelated businesses, all operating under one parent company. Unlike a company that sticks to one specific industry, a conglomerate spreads its interests across different sectors. Think of it as a financial “supergroup” — each division plays a different instrument, but they’re all under the same record label.

Definition of Holding Company A Holding Company is a business entity that exists primarily to own shares in other companies. It doesn’t usually make products or offer services itself—instead, it holds controlling interest in other businesses. Think of it like the parent who doesn’t run the lemonade stand but owns the stand… and the ice supplier… and the cup factory.

Definition of a Parent Company A parent company is a corporation that owns enough voting stock in another company to control its policies and management. The company it controls is called a subsidiary. Think of a parent company as the “boss” in the business family tree. While it may not run the day-to-day operations of its subsidiaries, it has the power to call the shots when it matters—like choosing leadership, approving budgets, or selling the business.

The richest people in the world follow structured, repeatable systems that ensure their money works for them 24/7.

When you invest in an index fund, you’re essentially buying tiny pieces of all the companies in that index.

Starting early with your retirement planning is the smartest financial move you can make. Time is your friend when building wealth.

Peer-to-Peer lending is a method of debt financing that enables individuals to borrow and lend money without traditional banking methods.

An Exchange-Traded Fund, or ETF, is a type of investment fund and exchange-traded product, meaning it is traded on stock exchanges.

Dollar-cost averaging is an investment strategy where you invest a fixed amount of money at regular intervals regardless of asset price.

Annuities are like reverse life insurance policies. They provide a steady stream of income while you are alive.

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate.

Passive Investing is putting your money into investment vehicles that don’t require daily decisions or constant portfolio tinkering

An emergency fund is a stash of cash specifically set aside to bail you out of unexpected situations and creates stability for your family.